Which of the following often happens when the Fed and fiscal policy makers disagree?
a. The Fed changes its policy to align with the fiscal policy
b. The Fed supports the fiscal policy even though it disagrees with this policy.
c. The Fed tries to limit the effects of the fiscal policy.
d. The Fed waits to see how effective the fiscal policy is before acting.
c. The Fed tries to limit the effects of the fiscal policy.
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Suppose a terrorist group bombs a federal building, causing $ 1 million in expenditures on new construction and healthcare for the victims. The new expenditures
A) would be subtracted from the gross domestic product account. B) would be added to the gross domestic product account. C) would be added to the gross domestic product account and subtracted from the national income account. D) would impact GDP in none of the above ways.
The marginal product of labor indicates ________. Therefore the MPL curve is also ________
A) the quantity of labor supplied for a given wage; the equilibrium price of labor B) the quantity of labor demanded for a given wage; the equilibrium price of labor C) the quantity of labor demanded for a given wage; the demand curve of labor D) the quantity of labor supplied for a given wage; the supply curve of labor E) none of the above
When a monopsony coal mining firm has control over employment in the rich coal fields of Harlan County, Kentucky,
a. it will pay its workers the market equilibrium wage b. workers will work for the firm that pays the higher wage rate c. coal buyers will continue to buy coal from other counties d. coal miners will only have one employment option e. wages will be determined only by the demand for labor
Incomes for adults vary widely across race and gender in the United States. These differences could be due to:
A. discrimination. B. choice of occupation. C. education. D. All of these can explain the differences.